 |
Have you ever wondered who answers the phone and processes your order at a spread betting company?
One such person is Nicola Poskitt of City Index. Nicola, 26, grew up in Gidea Park, near Romford in Essex, and left school at 16 to work for Watches of Switzerland, a retail jewellery group based in London's West End.
After a while, she became increasingly attracted to the well-paid, fast-paced possibilities of a job in the City of London. A career in London's financial district is not at all unusual for school-leavers from Essex: it's just a short tube ride away in most cases. Nicola estimates that around 25% of her class in Romford went on to work in the City.
But at 21, she realised her job prospects would be much improved by having a university degree, so she enrolled at Goldsmiths College, part of the University of London, and went on to graduate with a BSc in Computing and Information Systems. Soon afterwards, she landed a position at City Index in Moorgate.
Nicola works the phones, taking calls at the financials desk along with other traders and calling out new positions to the colleague responsible for keeping a tally of the firm's net positions in key markets. She provided us with some insights into the mechanics of dealing at a spreadbetting firm.
'Orders are constantly popping up on our computers, and when they do we check that the levels are all correct and process them using drop-down menus. Most orders are accepted in less than ten seconds. The majority of customers will place stop-loss or limit orders.
'There are about 100 people on the floor, though not all people are dealers. I am known as a financial trader, as are the people who keep the positions book.
They will not normally answer the phone unless it gets really busy. There are about five people just keeping the book on different markets in the area I work.
'On the financials (currencies and commodities) desk, there are around 11 dealers on duty at any one time and around 13 on equities. The binary betting desk (known as Binnexx) is also picking up considerable steam.'
Daily (intraday) FTSE and DOW are the most popular instruments traded, says Nicola. Currencies are also in vogue, especially euro versus the dollar and more recently Cable (sterling/dollar).
Other markets, such as NYMEX and BRENT Crude (oil), have enjoyed a recent rush. 'We have always had a lot of clients dealing in gold and some of the smaller things such as soybeans and soybean meal also get some trade. Clients who trade commodities often opt to trade a range of markets.'
These days, Nicola is frequently up at 5.30 am in time to be at her desk for the first shift. On Saturday nights, though, she often meets old friends for a girls' night out
What happens if the market is moving really quickly, for example when some new figures come out? If the underlying market moves in the few seconds that the customer has to submit a bid on the price offered, is this order accepted or rejected?
'That's at the discretion of the person who's got the book,' explains Nicola. 'But the majority of the time, we give people the price that they've been quoted because that's the price the client wants to deal at.
'A lot of the time, when figures do come out, we get very, very busy. But even on stop loss orders and things like that people will usually get filled at their level - even if there has been a jump in the market.'
If it's a very large number of pounds per point, is that more likely to be subject to a requite than a smaller deal? 'In theory yes, that is correct, but it does happen very rarely. Perhaps twice a month in a rapidly changing market at my station.'
These days, Nicola is frequently up at 5.30 am in time to be at her desk for the first shift. On Saturday nights, though, she often meets old friends for a girls' night out, going for a curry or an Italian.
Her mother, until recently a teacher and school head, and her father have combined together to run a beauty salon in Romford called 'Lesprit Delle', and she sometimes helps out.
Nicola left home a year ago and has bought a house in Stratford, where she lives with her partner Jason.
 |
It's strange what brings people to trading. For Val Moore it was a car accident that left her recuperating in London's Royal Masonic Hospital and wondering what to do next.
She happened across an article in a Sunday newspaper in early 1998 about a trader who was apparently training people successfully to become traders themselves. Later, having spent several thousand pounds on a course and software, she realised that what she had been taught was little more than theory. 'It was like having a history of a motor car but nobody teaching you how to drive it,' recalls Val. After that she developed her own individual, practical style.
Nowadays, Val trades only one market - the German DAX index - either through an online futures account with GNI, which provides her with one-click access into the exchange computer, or through a spread betting account.
Using for example, a 23-minute chart with a 13 and 7 exponential moving average crossover to obtain her entry points, Val stresses that she will only trade in the direction of the mediumterm trend. To determine trend direction on the DAX, she will use a longer moving average (like an 80 period) and not trade against the direction of that average.
As the DAX is often influenced by the direction of the American S&P 500 index - the 'big daddy of indices' - trades will also only be taken in the direction of this US index. Generally, she will look for at least 20 points in a trade, seeking or searching for palpable, previous support and resistance points in order to set her target. 'You'll never buy at the bottom or sell at the top,' says Val, adding, 'It's the chunky bit in the middle that I like.'
'Trading is all about consistency,' she says. 'Mentally you need to feel you come out of 80% of trades in a win situation. Consistency is far more important than going for big wins, especially since markets like the DAX now trade at lower levels and are less volatile today compared with a few years ago.'
She likens the process of trading to that of a sausage machine. In other words a rather monotonous process in which signals and trades go in consistently and results come out.
Using multiple lots, Val employs a simple technique to lock in profit. For example, she may go long four DAX futures at 3811. She might then close one lot at say 3821 and two at 3823, locking in her profit on three of the four lots and leaving the final contract to run in the event of a big move up. Should she perceive a trade is going against her she will close all contracts immediately, maintaining a strict 20-point stop loss.
Val has less than fond memories of brokers: 'You could tell from their attitude. They were sort of thinking: "Hah, for goodness sake - go back to your knitting."'
On the other hand, she adds, 'I definitely think spread-betting is the way to go. They (the spread-betting firms) can be very good and supportive and they do have these little training things, especially at the beginning where you can trade for £1 a point.'
She makes no bones about women's potential as traders, where she thinks they have a winning edge. Men too often try to over-complicate things, frequently shrouding their trading in mystery - 'You've got to take trading down to its most elemental and simplistic form.'
Val was born in Wimbledon in 1952. Her parents became publicans, and she grew up in and around The Queen's Arms in the Caledonian Road. She was married in 1971 and has worked for various insurance brokers and a printing company. At 36, she was in a car accident and became partially disabled until corrective surgery.
With her gusty good looks, bushy blonde hair and bright emerald-blue eyes, it's hard to believe Val, who was recently widowed, has enjoyed anything but the good life. But this lifestyle has been won at the altar of hard work, persistence and pain.
These days, she enjoys frequent holidays in Mallorca and occasionally runs a tennis camp there for children from the UK. Until recently, she could be spotted around Guildford in her sporty red Mercedes SLK Convertible but now has her eye on a racinggreen Aston Vantage.
Originally published on Shares Magazine
Adrian Brink is also in his early 50s. Mr Brink currently has a full time job, as a partner of a publishing firm so doesn't do trading on a full time basis.
But this isn't to say that trading is a hobby for him. He says he has turned his pension of £125,000 in 2004 into almost £800,000. He has done this from a combination of buying and selling shares in the mining sector as well as more recently trading a fund, now worth about £40,000, by spread betting in the silver market.
Mr Brink is the first to admit that he has been lucky with his initial investments, having picked the mining boom driven by the rapid urbanisation of the economic giants China and India.
He points out that the main risk he took was investing in one sector - commodities, but he has diversified widely within this sector.
"I've had two real disasters, both in the former Soviet Union, but overall, my investments have been well spread and my timing was good."
Mr Brink says that he is very conscious of sovereign risk. He also says that because the heat has come out of the commodities boom, he is now conscious of exploration risk and now looks solely to invest in mining companies that are actually producing, as well as exploring. Previously when the sector was hot, he invested in companies whose potential was all blue sky, or exploration based.
In his trading account he has reduced the risk he is taking as well. His strategy, a common one, is to buy and sell based on the relative strength indicator for the silver price, which indicates whether the commodity is over bought or over sold, according to Mr Brink.
"Previously when I traded, most of the money (in the fund) was at risk, but now I tend to trade a smaller percentage of cash and I haven't had margin calls.
I tend to set stop losses that are narrow. I find it irritating being taken out when I can see it will go the right way, but that is the nature of things."
Mr Brink says he spends about an hour a day trading, which seems to be the goal of most traders we spoke to.
"I like working in publishing. I wouldn't want to trade full time, because I would get bored. I quite like it when it's not a demanding activity."
Originally published on Investors Chronicle
After betting on the financial markets for more than a year, Andy Adow has been raking in more than £500 a fortnight, and the savvy trader has high hopes for 2008.
The 43 year-old surveyor, has followed the financial markets for more than 10 years now. He began with spread betting - but now sticks with fixed-odds financial betting, focusing mainly on forex trading.
Andy, from Newham, said: 'I have made a lot of money from fixed-odds financial betting, on Betonmarkets. It seems to work well for me, so I will definitely continue with it. I don't see it as betting, but financial trading, as I think it is possible to tell what is going to happen. For example, the pound shot up the other day so I put up a trade to be above that level.'
But Andy admits he sometimes gets it wrong. He said: 'Obviously you don't always get it right, but I seem to more often than not. I have won £1200 in just a couple of weeks and I went through a phase of winning a few £250 bets in a row, when I bet on the GBP/JPY with a one touch trade. I am definitely up on my money, but I have also lost some as well. When I first started I did really well and then I went through a bit of a lull, but I'm doing well again now. The forex markets are all about timing so the key is to make sure you get that right.'
Whilst Betonmarkets offers some of the widest range of bets in the online marketplace with 10 different types of fixed-risk bets on single stocks, stock indices and the forex; Andy particularly favours the forex markets which allow 24 hours a day trading activity, and also frequently bets on stocks. He prefers the One Touch range bets as these pay out if the market goes up or down, he usually aims to earn a 300 per cent plus return on his money.
Andy views financial betting as a second income. 'It is extremely lucrative', he added. He has spent his winnings so far on repairs to his house and a flat screen TV for his mum. Andy said: 'It's a great way of funding those extra expenditures.'
Andy has set himself a target for next year, aiming to generate £500 a week pocket money from BetsForTraders.com.
Apart from big events like the Grand National or the FA Cup, Andy does not bet on sports. And he believes financial betting is for everyone. He added: 'Although I have followed the markets for several years, I don't think you have to be a market whiz to be successful at financial betting. It is all about spotting a trend, following it and getting the timing right.'
Martin Hickman, who became hooked on spread betting after retiring, has had some spectacular gains - and losses.
Spread betting was meant to be just a hobby to keep Martin Hickman busy while his wife was out at work, but now it dominates his life.
'I was going to be a house husband, I was going to look after the dog and do a little trading on the side,' he said. 'But then things escalated. I am hooked - it has taken over my life.'
 |
Martin Hickman: "I've always been a bear market trader. I only sell the FTSE'
Mr Hickman's alarm goes off every day at 6.30am. 'I switch the computer on straight away - before turning on the kettle - and it stays on until well after midnight. I will sit there all day watching and waiting,' he said. 'I bore my wife silly about it, but she understands.'
Mr Hickman has made some serious money spread betting. He claims to have made about £300,000 last year alone. The cash has allowed him to build up a substantial property portfolio and take his family on luxury cruises and high-class breaks at the Waldorf hotel in London.
'I have been a trader nearly all my life,' he said. 'I was a futures trader trading sugar for 17 years before it became computerised, then I traded oil.' In retirement he decided to give spread betting a whirl.
'I've always been a bear market trader. I only sell the FTSE,' he said. It meant he made almost straight losses for the first three years in the early Noughties as the FTSE 100 index soared. He was still shorting the FTSE in 2007 when it neared 7,000 points. But then came the crashes of 2008.
'In January 2008 I made £70,000 in one month. All in all, 2008 was a fantastic year for me. I made about £300,000,' he said. Despite the FTSE's gains at the end of last year Mr Hickman, continued to short the FTSE.
He claimed to have made a further £173,000 in the first three months of 2009 when the FTSE slid to just above 3,500. Since then things have not been so rosy, as the FTSE has come back. He said daily profits and losses could easily swing from £40,000 down to £40,000 up.
'On the worst day this year I lost about £200,000,' he conceded.
But the 54-year-old won't even consider giving up. "What else can you do that is this much fun and you can make so much money from?" he asked. 'The real beauty is you can do it when you want, from wherever you want - I often place trades while on the deck of cruise ships with a drink in my hand.'
The content of this site is copyright 2016 Financial Spread Betting Ltd. Please contact us if you wish to reproduce any of it.
